basis of a budgeted normal output

SOLUTION AT Australian Expert Writers

Bailey plc commenced business on 1 March making one product only, the standard cost ofwhich is as follows:Thefixed production overhead figure has been calculated on the basis of a budgeted normaloutput of 36,000 units per annum. The actual fixed production overhead incurred in Marchand April was £15,000 each month.Selling, distribution and administration expenses are:
Fixed
£10,000 per month
Variable
15% of the sales value
The selling price per unit is £35 and the numbers of units produced and sold were:
March(Units)
April(Units)
Production
2,000
3,200
Sales
1,500
3,000
Required:
(a)
Prepare profit statements for each of the months of March and April using:
(i)(ii)
absorption costing; andmarginal costing.
(b)
Present a reconciliation of the profit or loss figures given in your answers to (a).
£
Direct labour
5
Direct material
8
Variable production overhead
2
Fixed production overhead (Budgeted rate)
5___
Standard production cost/unit
£20___

Order from Australian Expert Writers
Best Australian Academic Writers

QUALITY: 100% ORIGINAL PAPERNO PLAGIARISM – CUSTOM PAPER